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Ashanti Gold continues to show Kossanto East's potential with latest drill results

Last updated: 13:31 20 Jul 2018 EDT, First published: 04:53 20 Jul 2018 EDT

Drill rig
Pictured is the Kossanto East project in western Mali

Ashanti Gold Corp (CVE:AGZ) continues to show the positive potential of the Kossanto East project in western Mali - as it released latest drill assays.

The results come from the recently completed reverse circulation (RC) and diamond drill program testing the mineralisation at the site and today's assays expand the Sana Zone area.

Highlight assays include 3.12 g/t (grams per ton) gold over an interval of 3m (metres) and 4.82 g/t of the yellow metal over 2m.

READ: Ashanti Gold discovers new gold zone at Kossanto East project

The junior mining firm also revealed that widely spaced reconnaissance drill holes at Kossanto East had yielded significant results along the new Koli Zone.

Here, surface soil anomalies, historic RAB (rotary air blast) and trench results along with altered felsic tuff at the surface indicated the presence of more extensive mineralization, it said.

The firm said it was waiting for more results from the Gourbassi East Main Zone and from Gourbassi West and will release these shortly.

"What we liked about Kossanto East when we acquired the project was a significant amount of exploration risk had been removed by the previous operator and that those previous results were very attractive," Tim McCutcheon, chief executive, told investors on Friday.

"However, where we saw the main opportunity, and the added value of the Ashanti team, was the potential for demonstrating much larger areas of mineralization throughout the license," he said.

"The growth of the Sana Zone and scope for future growth of the Koli Zone fits our thesis for Kossanto East’s potential."

WATCH: Ashanti Gold CEO reports 'high-grade, very big interval' drill results from Mali gold project

Exploration has been moving fast at the project. Earlier this month, the group said it had discovered a new gold zone at the property.

The new gold-mineralized zone, named the Kadi zone, lies around 1km northeast of the main zone, in Gourbassi East.

"The discovery of the Kadi zone is important as it potentially adds more mineralized material to what Ashanti has already identified at Gourbassi East and West," said McCutcheon.

"Along with collecting data to complete a resource report, this most recent drill campaign was designed to show upside potential of the Kossanto East project, and Kadi clearly does this. More results are due to come, and I look forward to sharing them with you."

Shares were unchanged at C$0.095.

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